BOSTON, Dec. 9 /PRNewswire/ -- Eaton Vance Corp. (NASDAQ-NMS: EAVN) earned $27.3 million for the year ended Oct. 31, 1993. These earnings are 42 percent higher than the $19.3 million reported for fiscal year 1992. On a per share basis, earnings of $3.09 are 24 percent higher than the $2.49 earned a year earlier. The earnings include contributions from the company's gold mining activities of 26 cents in 1993 and 1 cent in 1992.
The company earned $4.0 million in the fourth quarter of the 1993 fiscal year. It earned $4.6 million in the same period in the prior fiscal year. The per share earnings of 41 cents and 59 cents in the 1993 and 1992 final quarters included losses from gold mining operations of 21 cents and 15 cents respectively. The primary sources of losses from gold mining activities in the last three months of the year, and the gains earlier in the year, were fluctuations in the market values of investments in the two gold mining partnerships.
Average shares outstanding rose from 7.8 million in the fourth quarter of 1992 to 9.5 million in the fourth quarter of 1993, largely as a result of a public offering of stock in April, 1993.
Investment Management
Assets under management of $15.4 billion on Oct. 31, 1993 were 36 percent higher than the $11.3 billion a year earlier. Sales of $4.3 billion (including $3.6 billion in municipal bond funds) for the 1993 fiscal year exceeded sales of $2.9 billion for fiscal 1992 by 46 percent and were the primary cause of the increase in assets. Fund shareholders redeemed $1.3 billion during 1993, 16 percent less than the $1.5 billion redeemed during 1992.
Increased assets under management caused investment management revenues to rise to $146 million, 29 percent over those for fiscal 1992. Intensified marketing efforts were responsible for most of the 17 percent increase in investment management related compensation and the 18 percent increase in other expenses. Amortization of deferred sales commissions was 46 percent above that for the same period a year earlier.
As required by the National Association of Securities Dealers rule which became effective on July 7, 1993, mutual funds in Eaton Vance's Marathon family of funds reduced distribution plan payments to the company from an annual rate of 1.00 percent of assets to 0.75 percent. Since the new rule allows fund sponsors to continue to receive payments with a total present value larger than that received by the company under any of its distribution plans, the company expects to receive the same present value of income, but the smaller annual payments will cause that income to be spread over more years.
If the regulation had been in effect in the fourth quarter of 1992, Eaton Vance's per share earnings that quarter would have been reduced by approximately 21 cents.
Other Business
Custodial and other assets administered by Investors Bank & Trust Company, a majority owned subsidiary providing fiduciary and related banking services, increased $18 billion, or 42 percent, to $61 billion on Oct. 31, 1993. The earnings contribution of the bank to the company's net income was $1.8 million in fiscal 1993, an increase of 50 percent over the $1.2 million recorded in 1992.
Financial Condition and Liquidity
Operations are the primary source of funds to meet the company's major cash need, the payment of commissions to broker/dealers selling shares of Eaton Vance mutual funds with spread commission pricing structures. The April of 1993 public offering and sale of 1,380,000 shares of non-voting common stock raised $44 million of cash. The company also has a $75 million line of credit with two unaffiliated banks. On Oct. 31, 1993, $33 million remained available under this credit facility.
The equity offering and retained earnings combined to increase the equity of the company over the course of the year, from $76 million to $145 million.
Eaton Vance Corp. is traded on the NASDAQ National Market System under the symbol EAVN.
1993 1992
Three Months Ended Oct. 31:
Net income $3,951,000 $4,636,000
Net income per share 41 cents 59 cents
Average shares outstanding 9,544,000 7,839,000
Twelve Months Ended Oct. 31:
Net income $27,341,000 $19,307,000
Net income per share $3.09 $2.49
Average shares outstanding 8,848,000 7,752,000
-0- 12/9/93
/CONTACT: Curtis H. Jones of Eaton Vance, 617-482-8260/
(EAVN)

CO: Eaton Vance Corp. ST: Massachusetts IN: FIN SU: ERN

DJ-JL -- NE009 -- 2269 12/09/93 14:18 EST

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